Who actually watches your broker
A licence is the single most important thing separating a broker you can complain about from one you cannot. Below are the 21 authorities behind every broker on BrokaBoy, ranked by how strict their retail protections are.
What a financial regulator actually does
A financial regulator licenses brokers and enforces the rules within its jurisdiction. Before a broker can legally take deposits from residents of a country, it usually needs a licence from that country's authority - or a passported equivalent. The licence is what turns a marketing promise into a legal obligation.
Requirements vary by authority and broker entity. They may cover minimum capital, client-money segregation, retail leverage, risk warnings, advertising, complaints and compensation arrangements.
Why it matters to you
- Some authorities require client money to be separated from broker operating funds.
- Some provide an external route for eligible complaints.
- Some jurisdictions add compensation arrangements if a broker becomes insolvent.
- Negative-balance protection may apply to eligible retail clients.
- Reporting and execution-disclosure requirements vary by authority.
Tier 1 - strictest
Mature markets with hard leverage caps, compensation schemes and aggressive enforcement (e.g. FCA, ASIC, MAS, BaFin).
Tier 2 - solid
Credible frameworks and real supervision, sometimes with lighter retail caps or smaller compensation cover.
Tier 3 - offshore
Lower capital requirements and limited recourse. Often used for higher leverage - treat with extra caution.
Every authority we track
ASIC regulates Australian financial services licensees and, since its 2021 product intervention order, applies leverage limits and conduct standards very close to the UK and EU model.
BaFin supervises banks, insurers and investment firms in Germany. It was the first European regulator to force negative balance protection on retail CFD accounts, ahead of ESMA.
The Central Bank of Ireland authorises and supervises investment firms under MiFID II and is known for a demanding authorisation process and strong consumer protection code.
The FCA supervises around 50,000 financial firms in the UK and runs one of the strictest retail trading regimes in the world, with hard leverage caps, marketing rules and a statutory compensation scheme behind client money.
Swiss prudential and conduct regulator; brokers must hold a bank or securities-firm licence with strict capital rules.
MAS is Singapore's central bank and integrated financial regulator. Capital markets services licences are hard to obtain and carry rigorous capital and custody requirements.
The NFA is the self-regulatory body for the US derivatives industry, working under CFTC oversight. US retail FX rules are the most restrictive of any major market.
US securities regulator working alongside FINRA to oversee broker-dealers serving American investors.
CySEC licences passport across the EU under MiFID II, which is why so many global brokers hold one. Protections follow ESMA rules, though supervision is generally seen as lighter-touch than the FCA.
The DFSA is the independent regulator of the Dubai International Financial Centre free zone, applying a common-law framework modelled closely on UK standards.
The KNF supervises Poland's financial market and applies EU MiFID II rules, with additional local disclosure duties such as publishing the share of losing retail accounts.
The MFSA is Malta's single financial regulator. Investment firms it licenses can passport across the EU under MiFID II and apply ESMA retail protections.
Kenya's Capital Markets Authority licenses non-dealing online forex brokers and supervises conduct in the Kenyan capital markets.
The FSCA is South Africa's market conduct regulator for financial institutions, licensing derivative providers under the FAIS Act with a focus on fair treatment of customers.
The SCB regulates securities and investment firms in The Bahamas. It is a mid-tier offshore regime with real supervision but far fewer retail-specific restrictions than the FCA or ASIC.
Regulator of investment business in the British Virgin Islands.
The Seychelles FSA licenses offshore securities dealers. Entities here can offer far higher leverage than onshore regimes, with correspondingly lighter conduct supervision.
Mauritian regulator for non-bank financial services, including investment dealer licences.
Belize's IFSC (now operating under the FSC) licenses international brokerage entities. It is an offshore regime typically used to serve clients outside the EU, UK and US.
Offshore regulator for the Labuan International Business and Financial Centre in Malaysia.
Offshore licensing authority in Vanuatu, widely used by retail brokers for non-EU clients.